It was Kings XI Punjab's second triumph in the three encounters they have played so far.
Delhi Daredevils, who were on the winning streak by winning both their earlier matches before coming to Mohali, suffered their first defeat.
Chasing a victory target of 159, Kings XI Punjab completed their task by scoring 162 for 6 in 19.3 overs.
The winning stroke was hit by Yuvraj Singh who dispatched Shoaib Malik for boundary.
Earlier, Delhi Daredevils won the toss and elected to bat first.
At one stage, they were struggling at 88 for 5 after 11.6 overs. It looked as if it would be low-scoring game. However, Manoj Tiwary played a defiant knock of 39 off 34 balls during his 52-minute vigil at the wicket.
Executing his strokes with confidence, Tiwary notched up six hits to the fence.
Dinesh Karthik (24, 2x4s, 1x6), Rajat Bhatia (17), F Maharoof (18) and Shoaib Malik (19) made some valuable contributions.
Delhi Daredevils had suffered an earlier jolt as their skipper Virender Sehwag was dismissed by Irfan Pathan, who had him leg before wicket.
He departed after scoring just six runs with the the team's total at 12.
One run later, opener Gautam Gambhir (18) also returned to the pavilion, caught by Yuvraj Singh off the bowling of mediumn pacer VRV Singh who emerged as the most successful bowler having taken three wickets for 29nruns. Irfan Pathan captured two wickets for 26 runs.
When Kings XI Punjab came out to bat, Delhi Daredevils got two early breakthroughs having dismissed opener Karan Goel (1) and Sri Lankan elegant batsman Kumar Sangakkara (4) with scoreboard reading just 11.
However, other opener Simon Katich maintained his cool and executed his strokes with power and precision for a match-winning innings of 75 before he was run out by Virender Sehwag. He stayed at the wicket for 62 minutes and hit 11 sweetly-timed boundries and one huge six. He faced just 52 balls.
Katich was associated in a 58-run partneship for the third wicket with Jayawardene (15). With Yuvraj Singh, Simon contributed 50 runs for the fourth wicket befoe the Sri Lankan was caught and bowled by Shoaib Malik who dived to his left full length to take a brilliant catch.Yuvraj continued to entertain the spectators with his strokeplay and remained not out on 40 which included three fours and two sixes, one measured 83 metres.
Katich was adjudged the man of the match.